As reported by the think tank Global Trade Research Initiative (GTRI), India achieved a trade surplus with 151 countries like the US and Netherlands while encountering a trade deficit with 75 nations, including China and Russia, in the first half of this year. The report suggests reducing imports of industrial goods from China to protect India’s economic sovereignty and strengthen domestic production.

The GTRI report stated that India should not be concerned about the trade deficit caused by importing crude oil and coal. Still, it should concentrate on decreasing imports of industrial goods, especially from countries like China, which threaten India’s economic sovereignty.

GTRI mentioned in a report that between January and June 2024, India had a trade surplus with 151 countries, accounting for 55.8% of its exports and 16.5% of its imports, totalling USD 72.1 billion. The largest surpluses during this period were with the USA (USD 21 billion) and the Netherlands (USD 11.6 billion).

India had a trade deficit with 75 countries, representing 44.2% of its exports and 83.5% of its imports, resulting in a deficit of USD 185.4 billion, significantly higher than India’s overall trade deficit. According to GTRI, this underscores the need to reduce dependence on specific imports and strengthen domestic production.

The think tank’s data analysis revealed that India’s trade deficit with 23 out of 75 countries exceeded USD one billion, accounting for 32.9% of India’s exports and 73.5% of its imports.

The top five countries with the highest trade deficits were China with USD 41.88 billion, Russia with USD 31.98 billion, Iraq with USD 15.07 billion, Indonesia with USD 9.89 billion, and the UAE with USD 9.47 billion.

The remaining 18 countries with a trade deficit exceeding USD one billion include Saudi Arabia (USD 9.43 billion), Switzerland (USD 8.46 billion), South Korea (USD 6.93 billion), Japan (USD 6.13 billion), Qatar (USD 5.76 billion), Hong Kong (USD 5.21 billion), Taiwan (USD 4.28 billion), Australia (USD 3.34 billion), Thailand (USD 2.60 billion), Germany (USD 2.10 billion), Vietnam (USD 2.07 billion), Malaysia (USD 1.49 billion), Venezuela (USD 1.47 billion), Peru (USD 1.10 billion), and Ireland (USD 1.10 billion).

GTRI added that India need not worry about its trade deficit with 11 countries, such as Angola, Iraq, Saudi Arabia, Australia, and Nigeria, which mainly export crude oil, petroleum products, and coal to India.

However, the country should monitor its trade deficit with four out of the 23 countries that primarily export gold, silver, and diamonds to India. The reduction in gold and silver tariffs in the budget from 15% to 6% may increase imports. These countries include Peru, Switzerland, UAE, and Hong Kong.

Regarding China, the report stated that from January to June 2024, India exported USD 8.5 billion to China while importing USD 50.4 billion, resulting in a trade deficit of USD 41.9 billion. This low export and high import rate makes China India’s largest trade deficit partner.

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